Years of salary freezes, benefit cuts and layoffs mean employees have been working harder for less compensation.  The job market was tight so they couldn’t do anything about it, but now that pent up frustration is ready to explode.

Recent surveys indicate that a full 81% of your workforce might be in play. As many as 60% of your workforce intend to leave this year, and another 21% are networking to keep their options open.*  

If you’re serious about taking action to keep your star players, here are eight action steps to take now:

1. Survey employee engagement.  If you’ve never done an engagement survey, this is the time to start.  We’re rebounding off a tough economic climate when employees were asked to do more with less.  Studies show these folks are itching to switch jobs, and Deloitte is predicting a ‘resume tsunami.’ You may be unpleasantly surprised at the results.
2. Make engagement and retention a priority.  Use your survey to determine which areas are driving dissatisfaction and set organizational priorities around fixing those first.
3. Hold managers accountable.  You know the old adage “what gets measured gets done.” Communicate strong corporate expectations and tie results to manager performance.  Do that and managers will focus their attention on cultural strategies to address the issues of retention and engagement.
4. Restore compensation as soon as possible.  Compensation and benefits are the main drivers for retention.  This will buy you time while you address organizational and cultural issues.
5. Introduce flexible work arrangements or increase visibility for your current program. It ranks third as a key retention strategy after comp and benefits. In a November 2009 survey, work/life balance ranked second (21%) after career development prospects (40%) when employees were asked what’s most important when considering a new employer.
6. Invest in team-technology.  The right applications aide communication and build transparency within work teams, so that everyone can see progress toward project goals.  This is a good first step toward freeing up employees to work wherever, whenever they want to while giving management the “eyes” they need to see work getting done.
7. Stop asking.  Working moms aren’t the only ones with work-life balance issues.  Stop asking employees to justify why they need a flexible schedule.  It doesn’t matter why we work (or why we need flexibility), the fact is that we do.   If an employee demonstrates a history of performance, and their work allows, he or she should have access to flex. (Even if it means they just want to spend Fridays surfing. Repeat: It doesn’t matter why.)
8. Be transparent. Management needs to share organization financials and vision and make clear how an employee’s role contributes to the overall success of the company. 

It all comes down to trust. Make an authentic effort to build trust in your organization.  Treat employees like adults, set and measure expectations, and create a culture of transparency. That’s the kind of corporate climate that retains star performers…in any economy. 

Reference: Right Management, press release, Nov. 17, 2009: Employee Discontent Expected to Reach Crisis Level Next Year

Kyra Cavanaugh is the founder of Life Meets Work, a workforce consultancy that helps companies drive results through successful workplace flexibility and results-oriented management.